After the end of King of Iron Fist Tournament 4, father Kazuya Mishima and son Jin Kazama, battle each other at Honmaru, somewhere in the Mishima estate. Jin quickly beats his father. The oldest Mishima, Heihachi, enters the Honmaru to find his son defeated and asleep. Heihachi and Jin begin to fight. During the fight, Jin begins to show the Devil he got from his father, Kazuya. Just as it appears that Jin will kill Heihachi, Jin suddenly gains control of his body and flies away.

Suddenly, a bunch of "Jack" robots interrupt the battle. Both Kazuya and Heihachi are surprised at the attack, and begin fighting as a team against the Jack robots. During the battle however, Kazuya goes against his father, throws him into the Jack robots and runs away. Raven, watching on top of the cliff, speaks into a headphone and says: "Heihachi Mishima...is dead."

After hearing of Heihachi's death, people though that it would bring the end of the Mishima Zaibatsu. However, an unknown person had taken control, and a month later Mishima Zaibatsu announced the opening of The King of Iron Fist Tournament 5.

Following the end of the King of Iron Fist Tournament 4, Heihachi Mishima defeated Kazuya Mishima and led him to Honmaru Temple, planning to let both his son Kazuya and his grandson, Jin Kazama, battle and steal their "Devil Genes". Jin defeats both his father and his grandfather and flies away, leaving the latter two asleep. Shortly after, a group Jack-4 robots invade the Honmaru. The robots were made to take Heihachi's life. At the start, Kazuya and Heihachi fight the Jack-4's as a team, but eventually Kazuya throws Heihachi across the room as soon as he notices that Heihachi is getting tired. Then, Kazuya turns into Devil Kazuya and escapes, leaving Heihachi to deal with the Jack-4's by himself. They quickly explode, leaving Heihach. The explosion brings Heihachi's father Jinpachi Mishima back to life from his 50 year sleep beneath the Temple, and goes to and become head of the Mishima Zaibatsu. A few months later, the King of Iron Fist Tournament 5 is announced. It turns out that Heihachi survived the explosion, and now promises to find out and "break the neck of the one who started this ridiculous tournament!"

Tekken 5 kept many features from the older games, as well as new features, such as the new Crush System and the chance to dress up all chaaracters differently (except for Mokujin). It was also the first Tekken game to have a mini-game that hade a story of its own. It also had stages with no walls like the stages in all the older Tekken games (except for Tekken 4). The stages did not also have all the slopes and uneven ground, like they did in Tekken 4.

Tekken 5.1 was a small upgrade of the original Tekken 5 that was not released on consoles and instead, was only on arcades. It contained different balance changes to characters of the original game. It also fixed the damage done when using fground moves, instead of ground moves doing 100% damage, they now only did 70% damage. The character health bars for this game is a different colour to the health bars on the original Tekken 5.

Tekken: Dark Resurrection (DR for short) is an upgraded version of Tekken 5. It added two new characters, Emily "Lili" Rochefort and Sergei Dragunov, and it also added a returning older character, Armor King. Eddy Gordo also got his own character box, rather than just sharing a character box with Christie Monteiro. Plus, the game had new moves for the characters, as well as some changes to some older moves, in order to balance out the characters more, new customization items to use to dres up the characters, new stages, and new before fight and win animations, as well as some camera angle changes to some older ones. The game also recolored the main outfits of most of the characters, and the game's final boss, Jinpachi Mishima, got a new design, giving him a flame-like appearance, with a horn coming out of his head.

Tekken 5 was re-released on the PlayStation Portable as Tekken: Dark Resurrection (known as Tekken 5: Dark Resurrection in arcades and on PlayStation 3) with new stages, two new characters, one extra returning character, an online mode, new costumes and more. The character select screen is also different and there are new modes such as the Tekken Dojo mode, where the player has to enter a tournament, defeating ghosts (not actual ghosts you see at Halloween). Later on, after the release of Tekken: Dark Resurrection on the PSP, Namco decided to release the arcade version of Tekken: Dark Resurrection (called Tekken 5: Dark Resurrection) on the PlayStation Store. The PS3 version was a bit different from the PSP version. It was very much like the arcade version, but not exactly. The only things missing are Story mode, Ghost downloads, Tekken Dojo and a Customizing mode (although you can dress your characters up after you select them and before you fight with them). On the PS3 version, Jinpachi is also a playble character, unlike in Tekken 5 and Tekken: Dark Resurrection where he was unpplayable, unless a cheat device such as GameShark or an Action Replay was used (CWCheat and custom firmware 3.40 for PSP).